Handling a business is a pursuit that constantly changes. You must have the ability to adapt to these changes to make your business survive. To some, these changes interrupt progress. However, through the right practice, these business revolution can be rewarding.
The insurance industry happens to be one of the productive fields affected by these changes in handling a business. This sector continues to switch from model to model, making the traditional practice unsuitable to the fast pace business scenario.
Technological intervention in the insurance industry
Brokers are having a hard time taking the pressure relative to the abrupt sequence of changes in the industry. Recently, Accenture conducted a research which reveals that around 15 per cent up to 20 per cent of the Property and Casualty SME market will cover for the new and aggressive models, as well as for the digital platform in about 3 years. Furthermore, the income generated by brokers handling medium and large customers is expected to depreciate by 20 per cent. The business procedure will be simplified with digital advancement and automation resulting to a significant amount of savings for the enterprise. This will also benefit the customers but lower fees and commission will have a great impact to businesses.
In order to cope with this challenging pace, it is a must for brokers to immediately look for a strategy that complements the market transformation. There is no better way to cope with this advancement than becoming adept in digital technologies, than finding a reliable insurance industry software to assist your staff and accelerate their day to day procedures.
At present, many brokers are counting on mobile applications, as well as on digital management software. Both are regarded to be efficient in simplifying the job of a broker. In fact, a smartphone application named as ‘Claims Made Easy’ has been launched in the market. By means of this apps, the motor claim can be processed in just a few minutes. The report will be submitted to the insurance broker and the driver’s head office in no time. This technological advancement aims to shorten the time consumed when reporting a claim which is typically 23 days. ‘Claims Made Easy’ can reduce it to as much as 90 per cent. Apart from saving time, the app also aims to lessen the cost of claims. Most importantly, it cuts the frills in handling late and incorrect claims report for fleet and commercial motor. Behind this app is the British Insurance Brokers’ Association (BIBA). The members of the said association can have the app for a fraction of the price.
Continuous hunt for more efficiency
Insurers are becoming more and more attentive in finding and solutions for the market’s challenging demands. Companies in this industry, no matter where they are located, make a conscious effort to create a quick fix. Many resort to smartphone app, just like the creation of The British Brokers’ Association, but with slightly different features. Recently, Aviva and Lemonade, which are stationed in the UK and USA respectively, have made public their own version of the abounding app.
Lemonade produced a bot dubbed as A.I. Jim, which has been recognized for its capacity to process a claim within barely three seconds. It garnered acknowledgement for the short while it took to check on a person’s claim for a coat which has been stolen, counter it with the policy, and have the bank transfer the funds. Meanwhile, Aviva is yet to complete its own version of the program of which features will basically work the same way that the Lemonade app functions.
Although smartphone apps of this nature makes the performance of brokers more efficient, the revolution in the insurance business will further advance. Therefore, brokers should not cease seeking for digital solutions most especially with regards to engaging to customers.
Reports reveal that the insurance sector fails to match other industries in terms of making investments on IT programs (for programs in insurance check this page). The industry is found lacking in utilizing the technology for the purpose of protecting insurers from any form of risks. Mobile apps, in particular, can help companies specializing in insurance to increase customer satisfaction and become more efficient. It is also believed to help gain customer loyalty on account of a pleasant user experience. These are on top of reducing paperwork, which happens to be one of the things that complicate the job of a broker.
Robots versus brokers
The challenging part in embracing technological advances is having the need to set a limit to it while trying to benefit from its greatest potential. There had been an announcement from the Legal and General Insurance that they are already thinking of putting into practice the use of robo-advice. The organization stated that they are aiming at having their insurance procedure handled by robo advisers, which could mean less demand for brokers. Nevertheless, the fact that these advisers in the form of a robot cannot deal with clients in the same way that brokers do in terms of emotional and personal interaction, absence of brokers is still difficult to imagine. The inspection and estimation of claims will still require human intervention.
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Technology will remain an essential part of the industry but it can never take over the vital roles that brokers play. While investing on technology can be an attractive undertaking with its promise of increase in revenue, there are also disadvantages that come with it. To mention one that can lead to a lot of trouble is the exposure of the customer’s vital information to unauthorized individuals. Such is not likely to arise when dealing with brokers who owe the duty of confidentiality to customers.
A grasp of technology can take any business to the next level but it is also important to take into account the benefits of keeping the traditional practices. It is an advantage for brokers to be skilled at technology but it also makes sense to improve their competencies that give prominence to the human element. After all, it has not been completely proven that consumers will go for insurance companies with the most number of technological tools in use. The customers will still prefer a person who knows how to balance professionalism and friendliness (like these guys here), a good communicator, and one who can build a lasting relationship.